Forex Daily Forecast, Analysis and Prediction

Yesterday morning it looked like the market was ready to turn higher, but that did not happen.

The Euro and the Swiss Franc pair has been very indecisive lately. It seems that every 2-3 weeks it changes direction, without establishing a lasting trend.

The Australian Dollar had been in a long-term uptrend in relation to the New Zealand Dollar for some time now. This current leg of the bull market started in 2008 and recently, in early March, the price climbed to 1.3780, which is the highest level in almost 20 years.

This year, so far, has been relatively volatile in Forex trading.However, a few pairs have done very little in terms price progress and the GBP-CAD is one of them.

The Euro has been advancing against the US Dollar since the start of the year. During this time, the EUR-USD pair rallied from 1.2876 to the recent high of 1.4520.

The Swiss Franc continues its historic rally, especially against the US Dollar.

The Australian Dollar has been one of the biggest beneficiaries of the intervention in the Japanese Yen by central banks in mid March. It has rallied about 1500 pips in relation to the JPY since, a very strong appreciation in such a short time.

In spite of bad news regarding sovereign debt of some of the member states of the European Union, the common currency has been getting stronger.

The New Zealand Dollar has been very popular lately. Since the joint G7 central banks' intervention in the Japanese Yen, all of the commodity currencies, including the NZD, registered significant gains.

The intervention in the Japanese Yen last month was targeting the USD-JPY exchange rate, which was at an all time low. While other Yen crosses were not at extreme levels, they also benefited from that action, in most cases eve more than the US Dollar.

The EUR/GBP pair finds itself currently just over a bearish trend line that started in late 2008.

The Japanese Yen has not been the only currency getting significantly weaker since the G7 central banks intervention few weeks ago. Another "safe haven" currency, the Swiss Franc has also been on defensive during the same time, falling broadly.

Together with the Australian Dollar, the Kiwi staged impressive rallies in most of its crosses, which in some instances exceeded a 1000 pips mark.

Two weeks ago, the US Dollar dropped to an all time low against the Japanese Yen, reaching 76.12. It did not stay there for long, rebounding immediately.

The New Zealand Dollar staged a very impressive rally lately. It advanced broadly, gaining on most currencies, including the US Dollar.